A recent meeting took place at the Presidential Secretariat involving the Revenue Administration Reform and Modernisation Bureau (RARMB), which operates under the Presidential Secretariat’s direct oversight to enhance Sri Lanka’s public revenue system, and representatives from the International Monetary Fund (IMF). The gathering was presided over by Dr. Nandika Sanath Kumanayake, Secretary to the President.
The discussion focused on the reform initiatives that have been undertaken over the past year as part of Sri Lanka’s Medium-Term Revenue Strategy (MTRS). This strategy encompasses various aspects, including the nation’s tax framework, customs operations, excise management, and the broader public revenue structure.
Additionally, the IMF team engaged in separate discussions with high-ranking officials from the Inland Revenue Department, the Ministry of Finance, Sri Lanka Customs, and the Department of Excise.
The IMF representatives emphasized their interest in ongoing digital transformation initiatives, enhancing data integration, developing human resources and leadership capabilities, and implementing sustainable approaches to expand the tax base. Throughout these talks, RARMB was acknowledged as a ‘reform hub with a robust governance structure.’
The IMF has also committed to continuing its technical assistance and advisory services in relation to the reform initiatives for Sri Lanka Customs, the Inland Revenue Department, and the Department of Excise.
Founded in early 2025 under President Anura Kumara Dissanayake’s leadership and with Cabinet approval, the RARMB aims to modernize public revenue collection processes, enhance tax administration efficiency, carry out legal and institutional reforms, and achieve integrated management among the Inland Revenue Department, Sri Lanka Customs, and the Department of Excise.
As part of the reforms within the Inland Revenue Department, its branches have been restructured into Medium Corporate, Metro, and Regional Offices, resulting in an increase in tax compliance rates from 40-45% to 70-75%.
Moreover, after several decades without significant legislative changes, a new draft Bill to amend the Customs Ordinance has been developed and submitted to the Legal Draftsman’s Department. Additional plans include simplifying the tariff framework, implementing paperless operations, and enhancing support for exporters.
Simultaneously, the Department of Excise is advancing its modernization efforts through the development of a new Excise Management System.
An integrated coordination mechanism has also been established between Sri Lanka Customs and the Inland Revenue Department under the RARMB to promote data sharing, integrated risk management, collaborative audits, and verification of tax compliance by importers through a cohesive system.
The meeting featured an IMF delegation led by Andrew Killer from the IMF’s Fiscal Affairs Department, along with Revenue Administration Project Manager Cindy Negus, IMF Resident Tax Adviser Greg, Canadian Senior Adviser Bob Hamilton, and senior officials from the RARMB.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
